Friday, March 7, 2008

Total Starbucks Revenue

Starbucks is the world leading retailer and roaster for brand coffee and the company’s revenue continues to grow as well as the world-wide total number of stores. Its strategy of blanketing metro areas with stores may have reached a point of declining returns in some areas but there is still a lot of room to grow, particularly as a broader range of customers frequent the stores. (perhaps 30+ million each week).

Possible contribution of a Starbucks Customer over 20 years:

Average expenditure/visit $5.00
Visits/week 4
Yearly Total $1000
Profit Margin 20%
Total Profits over 20 years $4000 (non-discounted)

With 10 million customers total revenue would = $40 bil..

This suggests Starbucks should provide infinite service to keep the visit frequency as high as possible.

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